More than 20 people who worked at a filling station in Butterworth are up in arms after it shut its operations on Wednesday night.
This follows Caltex Eastern Cape Marketer (CECM) unceremoniously dissolving its trading partnership with the franchise outlet.
Pumps ran dry at the filling station yesterday after the East London-based CECM allegedly cut the fuel supply to the station over a licensing dispute that has seen the 10-year business deal between the two parties irretrievably breaking down.
According to franchise owner Saji James, CECM accused his company Mattam Trading CC, trading as Walker Motors, the owners of the Caltex franchise, of not having a retail licence.
James confirmed to the Dispatch that his business did not have a retail licence, but said the reason for this was that CECM had sold the franchise to him in a “crooked way”.
According to James, he had made numerous attempts to acquire the trading licence since 2010, but each time the application had been declined by the Department of Minerals and Energy.
James said he received a letter from the East London-based franchisor eight months ago advising him that they were not happy with his dealership and he should sell the business to someone else.
James said after finding a buyer he sold the place for R4.8-million but the ownership and transfer of funds had become mired in the red tape around the licensing dispute.
James said he was ready to vacate the place but he needed to get the money he bought the franchise with, which had over 10 years accumulated interest to the tune of R4.8-million.
According to James, Walker Motors bought the garage from Venhaji Trading (Pty) Ltd in 2006 for R1-million.
“CECM interviewed and screened the new buyer and were happy to do business with them.”
The future hangs in the balance for the people who work at the filling station.
The business has a staff complement of 16 petrol attendants, three cashiers and two supervisors.
CECM hammered the last nail in James’s coffin when they granted a licence to a new Caltex to operate right across the road from his site.
The grand opening was scheduled for yesterday morning but when the Dispatch arrived around midday, it had not opened for business.
The old Caltex staff were picketing in front of the new Caltex.
In an e-mailed response, the Nahoon-based Caltex franchisor said they had a longstanding policy of not commenting on or discussing confidential commercial matters relating to their clients.
However, in a statement sent late yesterday company CEO Clive Berlyn said: “Due to business and commercial reasons CECM chose not to offer Mattam Trading a new agreement and Mattam Trading was given notice to vacate the site as at September 30 2016.
“The existing staff will be offered first opportunity to continue to be employed by the new retailer.”
The company said they ended the agreement with the Butterworth franchise due to the “effluxion” (outflow) of time on July 31 2016. — malibongwed@dispatch.co.za
Picket of 21 over filling station dispute
This follows Caltex Eastern Cape Marketer (CECM) unceremoniously dissolving its trading partnership with the franchise outlet.
Pumps ran dry at the filling station yesterday after the East London-based CECM allegedly cut the fuel supply to the station over a licensing dispute that has seen the 10-year business deal between the two parties irretrievably breaking down.
According to franchise owner Saji James, CECM accused his company Mattam Trading CC, trading as Walker Motors, the owners of the Caltex franchise, of not having a retail licence.
James confirmed to the Dispatch that his business did not have a retail licence, but said the reason for this was that CECM had sold the franchise to him in a “crooked way”.
According to James, he had made numerous attempts to acquire the trading licence since 2010, but each time the application had been declined by the Department of Minerals and Energy.
James said he received a letter from the East London-based franchisor eight months ago advising him that they were not happy with his dealership and he should sell the business to someone else.
James said after finding a buyer he sold the place for R4.8-million but the ownership and transfer of funds had become mired in the red tape around the licensing dispute.
James said he was ready to vacate the place but he needed to get the money he bought the franchise with, which had over 10 years accumulated interest to the tune of R4.8-million.
According to James, Walker Motors bought the garage from Venhaji Trading (Pty) Ltd in 2006 for R1-million.
“CECM interviewed and screened the new buyer and were happy to do business with them.”
The future hangs in the balance for the people who work at the filling station.
The business has a staff complement of 16 petrol attendants, three cashiers and two supervisors.
CECM hammered the last nail in James’s coffin when they granted a licence to a new Caltex to operate right across the road from his site.
The grand opening was scheduled for yesterday morning but when the Dispatch arrived around midday, it had not opened for business.
The old Caltex staff were picketing in front of the new Caltex.
In an e-mailed response, the Nahoon-based Caltex franchisor said they had a longstanding policy of not commenting on or discussing confidential commercial matters relating to their clients.
However, in a statement sent late yesterday company CEO Clive Berlyn said: “Due to business and commercial reasons CECM chose not to offer Mattam Trading a new agreement and Mattam Trading was given notice to vacate the site as at September 30 2016.
“The existing staff will be offered first opportunity to continue to be employed by the new retailer.”
The company said they ended the agreement with the Butterworth franchise due to the “effluxion” (outflow) of time on July 31 2016. — malibongwed@dispatch.co.za
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